Biocon Group Delivers Healthy Performance for FY 2007-08

Biocon Limited today announced its financial performance for the financial year ended March 31, 2008.

PERFORMANCE HIGHLIGHTS:

FY 2008 (April '07 - March '08) v/s FY 2006 (April '06 - March '07)

-- Consolidated revenue (excluding enzymes) increases 19% from Rs: 881 to Rs. 1,044 crores.

-- Operating margins at 31% for the year, an improvement of 2% over the previous fiscal.

-- PAT increases by 13% to Rs. 225 crores (excluding, net exceptional income) .

-- Earnings per share at Rs. 22.5 for the year.

-- R&D revenue expenditure increases by 26% to Rs. 48 crores.

-- Board recommends dividend of 60% (Rs. 3/- per share).

-- Board also recommend a Special Dividend of 40% (Rs. 2/- per share) pursuant to the divestment of the Enzymes business.

-- 1:1 Bonus Share issue recommended by the Board.

REVENUE ANALYSIS:

Profit growth has been maintained at the consolidated level despite the divestment of the enzymes business, currency appreciation and increased depreciation. We have a strong Balance Sheet with high reserves and Rs. 193 crores in net cash.

Revenues from Research Services grew 29% to Rs. 176 crores from Rs.136 crores, contributing 16 % to consolidated revenues in FY 2008, but currency appreciation and capacity expansion for future demand kept operating margins flat.

Note: The discussions in this release reflect the audited financial performance of Biocon Limited based on Indian GAAP on a consolidated basis. This considers the financial performance of Biocon Limited, its wholly owned subsidiaries Syngene International Private Limited and Clinigene International Private Limited and its 51% joint venture Biocon Biopharmaceuticals Private Limited.

OUTLOOK:

Commenting on the results, Kiran Mazumdar-Shaw, Chairman and Managing Director, Biocon Limited, said:

"We are pleased with our overall performance and have delivered the highest profits to date. We have increased our capital expenditure to support the business expansion that we anticipate across the Group. We expect the year ahead to realize a good return on these investments especially at Syngene and Clinigene. We have a strong Balance Sheet which we will use for strategic acquisitions and investments.. The recent AxiCorp acquisition is a significant move that provides us key access to the European market. We wish to make similar inroads into other markets to expand our global footprint. We have delivered a 13% increase in PAT despite a Rs: 27 crore increase in depreciation. The strong financial base enables us to recommend a 1:1 Bonus issue that we believe will improve market liquidity to support Biocon's growing profile as a bellwether stock in the Life Science sector."